Table 133
Consider the Following MPS, BOM, and Inventory Data

question 127

Multiple Choice

Table 13.3
Consider the following MPS, BOM, and inventory data. You will need a blank MRP record to answer the question(s) .
Master Production Schedule: the following table shows the MPS start quantities.
Week
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { A } & 50 & & 80 & & & 100 \\\text { B } & & & & 60 & & 100 \\\hline\end{array}$$
Bill of Material
-End item A uses 1 each of component C and 1 each of subassembly D.
-Subassembly D uses 2 each of component E and 2 each of component F.
-End item B uses 1 each of component C and 2 each of component F.
Selected Inventory Data
Item
$$\begin{array} { | l | c | c | c | c | } \hline \text { Data Category } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \\\hline \text { Lot-sizing rule } & \mathrm { L } A \mathrm {~L} & \mathrm {~L} A \mathrm {~L} & \mathrm { FOQ } = 250 & \text { POQ (P = } \\\text { Lead time (wks) } & 3 & 1 & 3 & 2 ) \\\text { Beginning (on-hand) } & 50 & 80 & 90 & 1 \\\text { inventory } & 80 ( \text { wk 1) } & \text { None } & 250 ( \text { wk } 3 ) & 30 \\\text { Scheduled receipts } & & & \text { wk 1) } \\\hline\end{array}$$
-Use the information in Table 13.3.Which one of the following statements about item E is TRUE?

• A) There will be an action notice to expedite the scheduled receipt up to week 2.
• B) There is a planned receipt of 250 units in week 2.
• C) There is one planned receipt for the next 6 weeks.
• D) There is a planned order release of 250 units in week 3.

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Definitions:

Money Market Accounts

Interest-bearing accounts offered by financial institutions, combining the benefits of both savings and checking accounts, typically with higher interest rates.

Commercial Paper

An unsecured, short-term debt instrument issued by companies to finance their operational expenses.

U.S. Treasury Bills

Short-term government securities issued by the U.S. Treasury with a maturity of one year or less, often used as a risk-free investment option.

Sarbanes-Oxley

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent financial reporting by corporations, enhancing corporate governance and accountability.